NASDAQ$SMPL

The Simply Good Foods Company · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong sales and earnings growth in the second quarter of fiscal year 2022.

The Simply Good Foods Company reported a strong second quarter with net sales increasing by 28.7% and adjusted EBITDA increasing by 27.1%. The company is also updating its full fiscal year 2022 outlook, expecting net sales to increase 13-15% and adjusted EBITDA to increase slightly less than the net sales growth rate.

  • Net sales increased 28.7%.
  • Net income of $18.5 million compared to a net loss of $26.2 million.
  • Adjusted Diluted EPS of $0.36 versus $0.25.
  • Adjusted EBITDA increased 27.1% to $54.2 million.

Headline financials

Total Revenue

$297M

Previous: $231M+28.7%
EPS (adj)

$0.36

Previous: $0.25+44.0%
Adjusted EBITDA

$54.2M

Previous: $42.6M+27.1%
Capital Expenditures

-$4.34M

Previous: -$449K-866.4%
Free Cash Flow

$14.1M

Previous: $18.7M-24.4%
Net Income

$18.5M

Previous: $19.1M-3.4%
Operating Income

$46M

Previous: $33.3M+37.8%
Gross Profit

$109M

Previous: $90.3M+20.2%
Cash & Equivalents

$51.5M

Previous: $91.3M-43.6%
Total Assets

$2.09B

Previous: $2.02B+3.3%
Stock-Based Comp

$3.09M

Previous: $2.48M+24.5%

Revenue & EPS history

Simply Good Foods · Revenue · Quarterly

$297M

Q2 2022+28.7%vs Q2 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Simply Good Foods · $231M total across 2 segments · Q1 2021

  • Atkins
    $135M
  • Quest
    $95.8M

Forward guidance

The Company expects that it will generate solid net sales and Adjusted EBITDA growth in fiscal 2022. The Company's outlook does not assume any meaningful improvements in workplace mobility or significant supply chain interruption and anticipates the following in fiscal 2022:

Tailwinds

  • Net sales to increase 13-15% versus last year. Included in the sales outlook is about a 2 percentage point headwind due to the European business exit and the licensing of the Quest frozen pizza business in March. The Company's previous outlook was for net sales growth of 12-14% and a 1 percentage point headwind related to the European business exit;
  • The Company reaffirms its gross margin outlook of about 250 basis points decline versus last year;
  • Full-year fiscal 2022 Adjusted EBITDA to increase slightly less than the net sales growth rate;
  • Full-year fiscal 2022 Adjusted Diluted EPS to increase greater than the Adjusted EBITDA growth rate.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.5%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+1.6%

Avg return

30 days after

51%

18 / 35 earnings

Positive

+16.8%

Q4 2022

Best reaction

-17.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026
Q2 2026-0.3%-21.0%-14.9%
Q1 2026+6.7%+9.8%-10.5%
Q4 2025-17.5%-20.8%-19.2%
Q3 2025-2.9%-3.9%-14.7%
Q2 2025+9.2%+13.2%+7.9%
Q1 2025-6.5%-6.2%+0.3%
Q4 2024+3.8%+4.7%+21.0%
Q3 2024-0.1%-1.0%-6.6%
Q2 2024-1.2%+0.6%+14.6%
Q1 2024+3.8%+4.4%-4.3%
Q4 2023+11.3%+11.6%+21.7%
Q3 2023+5.8%+6.0%+10.1%
Q2 2023-5.9%-4.5%-2.2%
Q1 2023-7.2%-5.4%-5.6%
Q4 2022+16.8%+15.8%+17.8%
Q3 2022-5.8%-8.9%-20.8%
Q2 2022+10.1%+6.3%-0.2%
Q1 2022-8.0%-11.1%-16.1%
Q4 2021+13.1%+13.3%+13.7%
Q3 2021+2.7%+1.5%+2.7%
Q2 2021+1.9%+4.6%+12.0%
Q1 2021-1.2%-3.3%-6.0%
Q4 2020-4.3%-11.1%+6.2%
Q3 2020+0.6%+2.0%+15.1%
Q2 2020-9.3%-15.9%-3.1%
Q1 2020-13.7%-12.4%-16.9%
Q4 2019+1.7%+1.5%+17.0%
Q3 2019+7.2%+11.5%+7.3%
Q2 2019+3.8%+1.5%+2.1%
Q1 2019+1.0%+0.1%+2.5%
Q4 2018-8.7%-11.0%+1.2%
Q3 2018+12.5%+13.7%+14.5%
Q2 2018-0.2%+1.2%+6.5%
Q1 2018+0.2%+4.5%+7.4%
Q4 2017-0.3%-0.3%-6.0%
Q3 2017
Q2 2016
Q1 2016
Q4 2016
Q3 2016

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro